The Securities Act requires licensees to effect and maintain appropriate policies of insurance coverage for the purpose of indemnifying the firm against any liability that may be incurred as a result of any act or omission by the licensee or any of its officers or employees in the conduct of the licensee's securities business.

It is a statutory requirement that all licensees, with the exception of an accredited principal and representative, effect and maintain appropriate policies of insurance coverage.

The custodian and management company of a collective investment scheme are also required to effect and maintain appropriate policies of insurance coverage.

A Broker dealer, Limited Service Broker or Investment Adviser (in the case of a company) must have within its employ at least one individual who is licensed as a principal and representative under the Securities Act.

It is the office that performs the administrative and technical functions of the ECSRC.

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Currently the staff complement is seven persons.

No. A firm licensed as a broker dealer is authorised to provide investment advisory services to the investing public.

The ECSRC may, if it thinks it necessary, suspend a licence of an individual or company licensed under PART IV of the Securities Act -

1. as a matter of urgency for the protection of investors, or
2. as a result of any investigation under the Securities Act or regulations made under the Securities Act; for a period, or until the happening of an event, as the ECSRC considers appropriate.

The ECSRC maintains a Register of Licensees which provides the following information on licensees, as well as licensed market institutions:

1. the name and address of the licensee;
2. the date on which the licence was granted;
3. the type of securities business permitted by the licence;
4. any conditions attached to the licence;
5. the name and address of every accredited representative;
6. the name and address of every manager and officer;
7. the location of the premises at which the records or other documents of the licensed business are kept;
8. in the case of a company licensee, the name of the principal(s), the name of each director and of the corporate secretary, and the names and respective shareholding of each shareholder;
9. any disciplinary action against the licensee;
10. any order of suspension or revocation; and
11. such other particulars as the ECSRC considers necessary in the interest of the investing or general public.

The register may be view via this link. The register is open to inspection by members of the public.

A person whose licence is revoked or suspended under PART IV of the Securities Act is deemed not to be licensed from the date of notification of revocation or suspension, as the case may be. The suspension or revocation of a license does not operate so as to –

1. avoid or affect any agreement, transaction or arrangement relating to a dealing in securities entered into by the person whose licence has been suspended or revoked, whether the agreement, transaction or arrangement was entered into before or after the suspension or revocation of the licence, except that the licensee shall not be allowed to retain any benefits charged or payable thereto; or
2. affect any right, obligation, or liability arising under any such agreement, transaction or arrangement.

Securities intermediaries are entities licensed under the Securiites Act 2001 by the ECSRC to provide the following services:

• investment advice;
• securities portfolios management;
• securities trading;
• underwriting;
• securities custodian;
• collective investment scheme management; and
• collective investment scheme custodian.

A licensee refers to a person (individual or company) licensed under Part IV of the Securities Act. The following persons are considered licensees:

1. Broker dealers;
2. Limited service broker dealers;
3. Investment advisers;
4. Custodians;
5. Principals of broker dealers, limited service brokers, or corporate investment advisers; and
6. Representative of broker dealers, limited service brokers, or investment advisers.

A broker dealer is a company that carries on the business of dealing in securities, or holds itself out as conducting such business, as defined in the legislation. This market participant generally provides full broker dealer services including investment banking, buying and selling of securities, underwriting, holding discretionary and non-discretionary accounts, and providing investment advice. The legislation informs that carrying on business dealing in securities, (whether acting as principal or agent) by way of business involves:

1. making or offering to make an agreement to enter into an agreement to acquire, dispose of, subscribe for or underwrite securities;
2. making or offering to make an agreement that effects or causes to effect a securities transaction; or
3. managing a portfolio of securities for another person where the portfolio manager may hold property of the other person.

Any person who carries on business requiring the grant of a licence under Part IV of the Securities Act without holding such a licence, or other than in accordance with his licence, commits an offence and is liable on summary conviction -

1. in the case of an individual, to a fine of one hundred thousand dollars or to imprisonment for two years or to both;
2. in the case of a company, to a fine of two hundred thousand dollars; and if the offence is a continuing offence, the individual or company is liable to a further fine not exceeding one thousand dollars for every day that the offence continues after conviction.

A person convicted of such an offence shall, following an assessment by the ECSRC, be liable to pay to the ECSRC, any monies received or the monetary equivalent of any assets obtained as a result of carrying on securities business without a licence.

The division of Market Regulation establishes and maintains appropriate standards for fair, orderly and efficient securities dealings in the Eastern Caribbean Securities Market. The division:

• establishes certification, operating, licensing, reporting and conduct requirements for licensees;
• assesses applications for licence from prospective market participants;
• conducts on-site examinations of market participants;
• undertakes market surveillance; and
• sets examinations for, and certifies, potential licensees